Read the full stored bill text
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0567.01 Christopher McMichael x4775 HOUSE BILL 26-1284
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING THE BILLING OF UTILITY SERVICE FOR TENANT UTILITY101
BILLS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill establishes requirements for landlords, unit owners, and
associations governing common interest communities (association) for
billing a tenant for utility service. A landlord, a unit owner, or an
association may individually bill a tenant using a submeter or bill a tenant
through a ratio utility billing system, which is a system that allocates
utility service costs among individual tenants based on a unit's square
HOUSE SPONSORSHIP
Phillips and Paschal,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
footage, occupancy, or other physical characteristics.
Starting on January 1, 2027, all new residential construction must
install individual submeters for each individual unit to measure water
consumption for each unit. A tenant's utility bill for water utility service
must be calculated based on the individual submeter reading.
For existing residential properties and other types of utility service
other than water service, the landlord, unit owner, or association may use
a ratio utility billing system if they meet certain requirements.
A landlord, a unit owner, or an association shall disclose to a
tenant in the tenant's rental agreement the method by which the tenant's
utility bills will be calculated. If a landlord, a unit owner, or an
association uses a ratio utility billing system, they must deduct at least
10% of the total utility service bill before allocating individual costs to
tenants in order to account for utility service to common areas of a
residential premises.
If a landlord, a unit owner, or an association is found in violation
of the provisions of the bill, the aggrieved tenant may file a civil action
in court and, if the tenant prevails, recover actual damages from utility
bill overages, additional damages in an amount not to exceed 25% of the
utility bill overages, and any attorney fees or court costs.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) The submetering of utility services produces s ubstantial4
conservation benefits, especially for water utility service in multiunit5
residential buildings, such as apartment buildings, condominiums, and6
common interest communities; and7
(b) Billing practices for utilities should be codified in Colorado8
law to provide clarity, promote transparency, and protect tenants.9
SECTION 2. In Colorado Revised Statutes, add part 16 to article10
12 of title 38 as follows:11
PART 1612
TENANT UTILITY BILLING AND SUBMETERING13
38-12-1601. Definitions.14
HB26-1284-2-
AS USED IN THIS PART 16, UNLESS THE CONTEXT OTHERWISE1
REQUIRES:2
(1) "A SSOCIATION" OR "UNIT OWNERS ' ASSOCIATION " HAS THE3
MEANING SET FORTH IN SECTION 38-33.3-103 (3).4
(2) "COMMON AREAS" HAS THE MEANING SET FORTH IN SECTION5
38-12-502 (2) AND INCLUDES COMMON ELEMENTS, AS DEFINED IN SECTION6
38-33.3-103 (5).7
(3) "C OMMON EXPENSES " HAS THE MEANING SET FORTH IN8
SECTION 38-33.3-103 (7).9
(4) (a) "COMMON INTEREST COMMUNITY" HAS THE MEANING SET10
FORTH IN SECTION 38-33.3-103 (8).11
(b) "COMMON INTEREST COMMUNITY" INCLUDES:12
(I) A CONDOMINIUM;13
(II) A COOPERATIVE; OR14
(III) A PLANNED COMMUNITY.15
(5) "C ONDOMINIUM" HAS THE MEANING SET FORTH IN SECTION16
38-33.3-103 (9).17
(6) "DWELLING UNIT" HAS THE MEANING SET FORTH IN SECTION18
38-12-502 (3).19
(7) (a) "L ANDLORD" MEANS THE OWNER , MANAGER , LESSOR ,20
SUBLESSOR, SUCCESSOR IN INTEREST , OR AGENT OF THE OWNER OF A21
RESIDENTIAL PREMISES.22
(b) "L ANDLORD" INCLUDES A UNIT OWNER OR AN ASSOCIATION23
ACTING AS A LANDLORD WITH RESPECT TO ANY LEASED UNIT WITHIN A24
COMMON INTEREST COMMUNITY.25
(8) "RATIO UTILITY BILLING SYSTEM" MEANS THE ALLOCATION OF26
UTILITY SERVICE COSTS AMONG TENANTS ACCORDING TO FACTORS SUCH27
HB26-1284-3-
AS SQUARE FOOTAGE, OCCUPANCY, OR OTHER PHYSICAL CHARACTERISTICS1
OF A TENANT'S DWELLING UNIT.2
(9) "R ENTAL AGREEMENT " HAS THE MEANING SET FORTH IN3
SECTION 38-12-502 (7).4
(10) "R ESIDENTIAL PREMISES " MEANS A DWELLING UNIT , THE5
STRUCTURE THAT THE UNIT IS A PART OF, AND THE COMMON AREAS.6
(11) "S UBMETER" MEANS A DEVICE THAT MEASURES THE7
CONSUMPTION OF UTILITY SERVICES FOR A DWELLING UNIT WITHIN A8
RESIDENTIAL PREMISES AND IS OWNED OR OPERATED BY THE LANDLORD9
OR LANDLORD'S AGENT, THE UNIT OWNER, OR THE ASSOCIATION.10
(12) "T ENANT" HAS THE MEANING SET FORTH IN SECTION11
38-12-502 (9).12
(13) "T HIRD-PARTY BILLING AGENT " MEANS A PERSON , OTHER13
THAN A LANDLORD, THAT IS ENGAGED TO PROVIDE UTILITY MANAGEMENT14
SERVICES ON BEHALF OF THE LANDLORD, WHICH SERVICES MAY INCLUDE:15
(a) INSTALLING A SUBMETER;16
(b) READING A SUBMETER;17
(c) CALCULATING RATIO UTILITY BILLING SYSTEMS; OR18
(d) HANDLING UTILITY BILLING AND COLLECTIONS.19
(14) "UNIT" HAS THE MEANING SET FORTH IN SECTION 38-33.3-10320
(30).21
(15) "U NIT OWNER " HAS THE MEANING SET FORTH IN SECTION22
38-33.3-103 (31).23
(16) "UTILITY SERVICE" MEANS SERVICE PROVIDED BY A UTILITY24
TO A RESIDENTIAL PREMISES AND INCLUDES WATER SERVICE, GAS SERVICE,25
ELECTRICITY SERVICE, TRASH OR RECYCLING SERVICES, AND HEATING OR26
COOLING SERVICES.27
HB26-1284-4-
(17) "W ATER SERVICE " MEANS UTILITY SERVICE RELATED TO1
WATER TREATMENT , WATER DISTRIBUTION , OR WATER USAGE THAT IS2
PROVIDED BY A UTILITY TO A RESIDENTIAL PREMISES, INCLUDING WATER,3
SEWER, STORM WATER, AND FLOOD CONTROL SERVICES.4
38-12-1602. Utility service billing methods.5
(1) EXCEPT AS PROVIDED IN SUBSECTION (2) OF THIS SECTION, A6
LANDLORD, A UNIT OWNER, AN ASSOCIATION, OR A THIRD-PARTY BILLING7
AGENT MAY USE A RATIO UTILITY BILLING SYSTEM OR A SUBMETER TO8
DETERMINE THE AMOUNT TO CHARGE A TENANT FOR UTILITY SERVICE TO9
THE TENANT'S DWELLING UNIT.10
(2) (a) A LANDLORD , A UNIT OWNER , A DEVELOPER , OR AN11
ASSOCIATION FOR A NEWLY CONSTRUCTED RESIDENTIAL PREMISES THAT12
APPLIES FOR INITIAL WATER SERVICE ON OR AFTER JANUARY 1, 2027,13
SHALL INSTALL SUBMETERS FOR EACH DWELLING UNIT AT THE14
RESIDENTIAL PREMISES.15
(b) A LANDLORD , A UNIT OWNER , OR AN ASSOCIATION SHALL16
MAINTAIN THE SUBMETERS INSTALLED AT THE RESIDENTIAL PREMISES AND17
SEND A BILL TO THE TENANT OF THE DWELLING UNIT FOR WATER SERVICE18
BASED ON THE DWELLING UNIT 'S SUBMETER MEASUREMENT OF WATER19
USAGE.20
38-12-1603. Submeter requirements.21
(1) I N ACCORDANCE WITH SECTION 38-12-1602 (2)(a), A22
LANDLORD, A UNIT OWNER, AN ASSOCIATION, OR A THIRD-PARTY BILLING23
AGENT SHALL BILL A TENANT FOR WATER SERVICE BASED ON THE ACTUAL24
SUBMETER READING FOR THE SUBMETER ASSOCIATED WITH THE TENANT'S25
DWELLING UNIT. THE TENANT'S BILL FOR WATER SERVICE MUST INCLUDE:26
(a) THE SUBMETER READINGS FOR THE BEGINNING AND END DATES27
HB26-1284-5-
OF THE BILLING CYCLE;1
(b) THE RATE AT WHICH THE UTILITY SERVICE IS BEING PROVIDED;2
AND3
(c) ANY SUBMETER READINGS THAT ARE ESTIMATED.4
(2) (a) I F A TENANT SUSPECTS THAT A SUBMETER IS5
MALFUNCTIONING, THE TENANT SHALL NOTIFY THE LANDLORD , UNIT6
OWNER, OR ASSOCIATION IN WRITING OF THE MALFUNCTION.7
(b) (I) A LANDLORD, A UNIT OWNER , OR AN ASSOCIATION THAT8
RECEIVES NOTICE OF A MALFUNCTIONING SUBMETER SHALL INVESTIGATE9
WHETHER THE SUBMETER IS PROPERLY RECORDING THE TENANT'S UTILITY10
SERVICE WITHIN FOURTEEN BUSINESS DAYS AFTER RECEIVING THE NOTICE.11
(II) I F A LANDLORD , A UNIT OWNER , OR AN ASSOCIATION12
DETERMINES THAT A SUBMETER IS INACCURATE , THE LANDLORD , UNIT13
OWNER, OR ASSOCIATION MUST REPAIR OR REPLACE THE SUBMETER AT NO14
COST TO THE TENANT.15
(3) IF A SUBMETER READING CANNOT BE OBTAINED, AN ESTIMATED16
READING FOR UTILITY SERVICE MAY BE USED FOR NO LONGER THAN SIX17
CONSECUTIVE MONTHS , AND ANY ESTIMATE MUST BE BASED ON PRIOR18
USAGE OF UTILITY SERVICES FOR THE DWELLING UNIT.19
(4) F OR A UTILITY SERVICE SYSTEM THAT CALCULATES USAGE20
WITHOUT A SUBMETER , INCLUDING VARIABLE REFRIGERANT FLOW21
SYSTEMS, A SYSTEM-PROVIDED CONSUMPTION READING MAY BE USED FOR22
BILLING A TENANT FOR THE UTILITY SERVICE.23
38-12-1604. Rental agreement requirements.24
(1) BEFORE EXECUTING A RENTAL AGREEMENT WITH A TENANT, A25
LANDLORD, A UNIT OWNER, OR AN ASSOCIATION THAT INTENDS TO CHARGE26
THE TENANT FOR UTILITY SERVICE SEPARATELY FROM RENT SHALL27
HB26-1284-6-
CLEARLY DISCLOSE TO THE TENANT, IN WRITING, THE FOLLOWING:1
(a) T HAT THE TENANT WILL BE BILLED FOR UTILITY SERVICE2
SEPARATE FROM THE TENANT'S RENTAL PAYMENT;3
(b) A NY ADMINISTRATIVE FEE THAT WILL BE CHARGED BY THE4
LANDLORD, WHICH FEES MUST NOT EXCEED THE AMOUNTS FOR FEES SET5
FORTH IN SECTION 38-12-801 (3)(a)(VI);6
(c) T HE METHOD BY WHICH THE LANDLORD , UNIT OWNER , OR7
ASSOCIATION WILL BILL THE TENANT FOR UTILITY SERVICE; AND8
(d) THAT THE TENANT MAY REQUEST, IN WRITING, A COPY OF THE9
INVOICE SENT TO THE LANDLORD BY A UTILITY SERVICE PROVIDER AND AN10
EXPLANATION OR CALCULATION OF CHARGES FOR THE TENANT'S UTILITY11
SERVICE, WHICH SHALL BE PROVIDED TO THE TENANT WITHIN FOURTEEN12
BUSINESS DAYS AFTER THE TENANT'S REQUEST.13
38-12-1605. Ratio utility billing standards - monthly billing14
requirements - prohibition on profits for utility service charges.15
(1) IF A LANDLORD, A UNIT OWNER , OR AN ASSOCIATION USES A16
RATIO UTILITY BILLING SYSTEM TO CHARGE A TENANT FOR UTILITY17
SERVICE, THE LANDLORD, UNIT OWNER, OR ASSOCIATION SHALL:18
(a) DISCLOSE TO THE TENANT IN THE RENTAL AGREEMENT THAT19
THE TENANT WILL BE CHARGED FOR UTILITY SERVICE BASED ON A RATIO20
UTILITY BILLING SYSTEM;21
(b) P ROVIDE THE TENANT WITH THE FORMULA USED BY THE22
LANDLORD, UNIT OWNER, OR ASSOCIATION TO CALCULATE THE TENANT'S23
UTILITY COST AND STATE THAT FORMULA ON THE TENANT'S UTILITY BILL24
EACH MONTH; AND25
(c) D ISCLOSE WHETHER THE RATIO UTILITY BILLING SYSTEM26
FORMULA TAKES INTO ACCOUNT THE OCCUPANCY OF A DWELLING UNIT27
HB26-1284-7-
AND HOW MANY OCCUPANTS ARE ASSOCIATED WITH THE DWELLING UNIT.1
(2) A LANDLORD , A UNIT OWNER , OR AN ASSOCIATION THAT2
EMPLOYS A RATIO UTILITY BILLING SYSTEM TO CHARGE A TENANT FOR3
UTILITY SERVICE SHALL DEDUCT AT LEAST TEN PERCENT OF THE TOTAL4
AMOUNT OF THE UTILITY BILL RECEIVED BY THE LANDLORD, UNIT OWNER,5
OR ASSOCIATION TO ACCOUNT FOR UTILITY SERVICE TO COMMON AREAS6
OF A RESIDENTIAL PREMISES BEFORE ALLOCATING CHARGES TO A TENANT7
FOR THE TENANT'S DWELLING UNIT.8
(3) A TENANT'S MONTHLY BILL FOR UTILITY SERVICE MUST ONLY9
INCLUDE THE FOLLOWING CHARGES:10
(a) THE AMOUNT DUE FOR THE UTILITY SERVICE PROVIDED TO THE11
TENANT AS CALCULATED BY:12
(I) A MEASUREMENT FROM A SUBMETER FOR THE UTILITY SERVICE;13
OR14
(II) A RATIO UTILITY BILLING SYSTEM;15
(b) A FEE IN THE AMOUNT AUTHORIZED PURSUANT TO SECTION16
38-12-801 (3)(a)(VI); AND17
(c) I F A UNIT OWNER OR AN ASSOCIATION RECOVERS FROM THE18
TENANT ANY PORTION OF AN ASSOCIATION ASSESSMENT THAT IS19
ATTRIBUTABLE TO UTILITY SERVICE , AN ITEMIZED STATEMENT THAT20
IDENTIFIES THE UTILITY SERVICE PORTION OF THE ASSESSMENT THAT IS21
SEPARATE FROM ALL OTHER COMMON EXPENSES.22
(4) THIS SECTION DOES NOT PROHIBIT A LANDLORD, A UNIT OWNER,23
AN ASSOCIATION, OR A THIRD -PARTY BILLING AGENT FROM INCLUDING24
OTHER LAWFUL CHARGES, INCLUDING RENT, ON THE SAME BILL THAT IS25
PROVIDED TO A TENANT FOR UTILITY SERVICE.26
38-12-1606. Damages - attorney fees.27
HB26-1284-8-
(1) IF A LANDLORD, A UNIT OWNER, OR AN ASSOCIATION VIOLATES1
THIS PART 16, THE AGGRIEVED TENANT MAY FILE A CIVIL ACTION IN COURT2
AND, IF THE TENANT PREVAILS, RECOVER:3
(a) ACTUAL DAMAGES RESULTING FROM BILLING OVERAGES THAT4
WERE CHARGED TO THE TENANT FOR UTILITY SERVICE;5
(b) A DDITIONAL DAMAGES IN AN AMOUNT NOT TO EXCEED6
TWENTY-FIVE PERCENT OF THE TOTAL OVERAGE AMOUNT CHARGED TO7
THE TENANT; AND8
(c) ATTORNEY FEES AND COURT COSTS.9
(2) N OTHING IN THIS PART 16 SHALL BE CONSTRUED AS10
CLASSIFYING A LANDLORD OR THIRD-PARTY BILLING AGENT AS A PUBLIC11
UTILITY OR COLLECTION AGENCY.12
38-12-1607. Prohibition on waiving tenant's rights.13
(1) A DECLARATION , RULE , OR PROVISION OF A RENTAL14
AGREEMENT MAY NOT WAIVE OR DIMINISH THE PROTECTIONS OR REMEDIES15
AVAILABLE TO A TENANT UNDER THIS PART 16.16
(2) A DECLARATION , RULE , OR PROVISION OF A RENTAL17
AGREEMENT THAT CONFLICTS WITH THIS PART 16 IS VOID AND18
UNENFORCEABLE.19
SECTION 3. Act subject to petition - effective date -20
applicability. (1) This act takes effect at 12:01 a.m. on the day following21
the expiration of the ninety-day period after final adjournment of the22
general assembly (August 12, 2026, if adjournment sine die is on May 13,23
2026); except that, if a referendum petition is filed pursuant to section 124
(3) of article V of the state constitution against this act or an item, section,25
or part of this act within such period, then the act, item, section, or part26
will not take effect unless approved by the people at the general election27
HB26-1284-9-
to be held in November 2026 and, in such case, will take effect on the1
date of the official declaration of the vote thereon by the governor.2
(2) This act applies to conduct occurring and rental agreements3
entered into or renewed on or after January 1, 2027.4
HB26-1284-10-